Cost & Quotation

Who Pays for Server & Cloud Costs? (AWS / Domain / Email / DB)

A practical breakdown of who bears server, cloud (AWS), domain, email, and database infrastructure costs during outsourced software development, including estimated amounts.

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Summary in 3 Lines
  • Infrastructure costs (server/domain/SSL) are typically borne by the client and are separate from development fees.
  • Expect roughly 50,000–300,000 KRW/month for an MVP and 300,000–2,000,000+ KRW/month for production.
  • All accounts must be registered under the client's name to avoid problems when switching vendors.

Infrastructure Cost Items and Who Pays

Outsourcing quotes usually cover "development fees" only; infrastructure costs required for operations are separate. Here is a summary of the costs and who bears them.

ItemMonthly Cost (MVP)Monthly Cost (Production)Paid By
Cloud Server (AWS/GCP)30,000–150,000 KRW200,000–1,000,000+ KRWClient
Domain (.com/.kr)10,000–30,000 KRW/year10,000–30,000 KRW/yearClient
SSL CertificateFree–100,000 KRW/yearFree–100,000 KRW/yearClient
DB Server (RDS, etc.)30,000–100,000 KRW100,000–500,000+ KRWClient
Email Sending (SES/SendGrid)Free–30,000 KRW30,000–200,000 KRWClient
SMS Sending10–20 KRW per message10–20 KRW per messageClient
CDN (CloudFront, etc.)10,000–50,000 KRW50,000–300,000 KRWClient
Monitoring (Datadog, etc.)Free50,000–300,000 KRWClient
PG Payment Fees2.5–3.5% per transaction2.5–3.5% per transactionClient

Key point: All infrastructure costs are borne by the client. Some vendors offer hosting on their own servers, but this creates migration costs when switching vendors, so client-owned accounts are strongly recommended.

AWS Cost Scenarios by Scale

Below are monthly cost examples based on AWS, broken down by service scale.

Small Scale (under 100 daily visitors)

EC2 t3.small: ~30,000 KRW/month

RDS db.t3.micro: ~30,000 KRW/month

S3 (file storage): ~10,000 KRW/month

Monthly total: approx. 70,000–100,000 KRW

Medium Scale (1,000 daily visitors)

EC2 t3.medium x 2: ~120,000 KRW/month

RDS db.t3.small: ~60,000 KRW/month

S3 + CloudFront: ~50,000 KRW/month

ElastiCache (Redis): ~50,000 KRW/month

Monthly total: approx. 280,000–400,000 KRW

Large Scale (10,000+ daily visitors)

EC2 Auto Scaling: ~500,000+ KRW/month

RDS db.r6g.large: ~300,000 KRW/month

S3 + CloudFront: ~150,000 KRW/month

ElastiCache + SQS: ~150,000 KRW/month

Monthly total: approx. 1,100,000–2,000,000+ KRW

Cost-saving tips: Take advantage of the AWS Free Tier (12 months), Reserved Instances (up to 40% discount with a 1-year commitment), and Spot Instances (up to 90% discount).

Account Ownership Management Checklist

Infrastructure accounts must be created under the client's name. If they are under the vendor's name, a vendor switch can turn into a serious incident.

Cautionary tale: There have been real cases where a server was built on the vendor CEO's personal AWS account, and after a dispute, server access was blocked, causing a complete service outage.

Cost-Related Agreements with the Vendor

When signing an outsourcing contract, make sure the following infrastructure items are agreed upon.

Initial Setup Costs

Server setup, database provisioning, and CI/CD pipeline configuration are generally included in the development fee. Check whether the quote has a "deployment/infrastructure" line item.

Obligation to Disclose Operating Costs

The vendor should provide estimated monthly operating costs before the project starts. Get a clear statement like "Server costs will be approximately X per month" upfront.

Infrastructure Management Scope

Confirm whether the maintenance contract includes infrastructure management (server monitoring, security patches, scaling). If it does not, you will need separate DevOps personnel.

Cost Optimization

The vendor should recommend appropriate server specs, but some vendors recommend excessive (expensive) configurations. At the MVP stage, start with the minimum specs and scale up based on traffic — this is the rational approach.

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Frequently Asked Questions

Are there vendors that cover server costs on our behalf?
Some vendors bundle server costs into a monthly flat fee for an "all-in-one" service. While convenient, be cautious: switching vendors later will require server migration, and costs may be opaque.
Are there alternatives if AWS is too expensive?
NCP (Naver Cloud Platform), Vultr, and DigitalOcean may be cheaper. However, consider the availability of a local region, local-language tech support, and ecosystem size. For MVPs, a Vercel + Supabase combination can also be cost-effective.
Can I run everything for free on the Free Tier?
The AWS Free Tier is free up to certain usage limits for 12 months, which may be enough for MVP validation. However, charges kick in once traffic grows, so be sure to set up billing alerts.

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